I WILL LOSE MY HOME OR CAR IF I FILE FOR BANKRUPTCY

This is FALSE. If you have a mortgage or car payment in place and can afford to pay that mortgage or payment, there is no reason the bank will try to take your home or car. If you have equity in your home in excess of the mortgage, it likely is protected by State or Federal homestead exemptions.

——–

MY CREDIT WILL BE RUINED IF I FILE FOR BANKRUPTCY AND MY CREDIT SCORE WILL PLUMMET

This is FALSE. If you are late on your bills or have your credit cards maxed out, your credit score probably has already been dragged down significantly. Reducing your debt to credit ratio may also help to improve your score.

In fact, after a bankruptcy discharge you are a much better credit risk than just about anyone else, creditors will consider the following:

• You have a clean financial slate
• You most likely have little or no remaining unsecured debt
• You have just completed two course – one on credit counseling and the second on financial management
• You have just put together a household budget and have used the process to strip the unaffordable debt from your budget
• You understand clearly the implications of poor credit management
• You can’t file another Chapter 7 for 8 years

——–

I SHOULD DO EVERYTHING I CAN TO AVOID BANKRUPTCY; INCLUDING LIQUIDATING ASSETS AND CASHING IN 401K OR RETIREMENT FUNDS.

This is FALSE. Retirement funds are protected in bankruptcy. If you decide to draw upon your retirement funds prematurely to pay creditors you may face taxes and penalties on those retirement withdrawals, by the IRS, if not repaid. You should consult with a bankruptcy attorney for a consultation to see what assets of yours will and can be protected in a bankruptcy filing.

——–

MY IMMIGRATION STATUS WILL BE AFFECTED AND I WILL NOT BE CONSIDERED FOR CITIZENSHIP

This is FALSE. Filing bankruptcy is NOT a crime and will NOT affect your Green Card or application for citizenship.

——–

MY FAMILY, NEIGHBORS AND EVERYONE WILL KNOW THAT I FILED FOR BANKRUPTCY.

This is FALSE. Although the U.S. Bankruptcy Court records are public aside from someone really looking for your records, people are not concerned enough to uncover your bankruptcy. Over 2 million people filed in 2005 and 2009 is looking to be close. In these tough economic times you probably know someone who has filed for bankruptcy and just don’t know it.

——–

I CAN’T AFFORD TO FILE BANKRUPTCY

This is FALSE. You can’t afford not to file bankruptcy in some cases. Smart and business savvy people file to save themselves from a TOTAL loss. Spending what may seem like a lot of money today can save you much more in the future. A consumer bankruptcy attorney will show you how to free up money in your budget to allow you to pay the fees to file the case.

If you or someone you know would benefit from filing for bankruptcy or have questions for an experienced bankruptcy attorney in Northern California, contact the lawyers of Bowman & Associates today for your free initial consultation. We can help!

Translate: